Mumbai: BMC issues letters to make hawkers eligible for bank loan under PM SVANidhi scheme

Mumbai: The Brihanmumbai Municipal Corporation (BMC) has given Letter of Recommendation (LOR) to 40 thousand hawkers so they can get a loan under Prime Minister Street Vendor Atma Nirbhar Nidhi Scheme (PM SVANidhi scheme) from any nationalised bank. According to a senior officer, by the end of the week BMC will issue more than 50,000 LOR.

The Ministry of Housing and Urban Affairs launched Prime Minister Street Vendor Atma Nirbhar Nidhi Scheme (PM SVANidhi scheme) to empower street vendors by not only extending loans to them, but also for their holistic development and economic upliftment. The scheme intends to facilitate collateral-free working capital loans of upto Rs.10, 000 of one year tenure to approximately 50 lakh street vendors, to help resume their business in the urban areas and semi urban areas. The applicants will have to repay the loan within a year and loan EMI amounts are marginal.

According to the Additional Municipal Commissioner, Asheesh Sharma, “My officers are in touch with hawkers’ association members to convince them to avail of loan under this scheme. This scheme will be helpful for the hawkers even in the future. Once a hawker repays his loan in a given time he will be eligible for more business and other types of loan easily, because timely repayment of loans will improve their credibility with the bank.”

The BMC has organised more than 350 camps where it is receiving ward-wise applications from hawkers. BMC is helping applicants and guiding them to fill up online forms. After receiving applications, the civic body is giving them LOR which helps hawkers to get a loan from the bank.

Deputy Commissioner Sanjog Kabre said, “As of today they have issued 40 thousand LOR and will issue more 60 thousand LOR till December end.”